Question

On what sum of money will the compound interest for 2 years at 5 per cent per annum amount to Rs. 768.75 ?

Answer 1

Given : C.I.= Rs768.75; n= 2years and r = 5%

Amount= P[$(1+\frac{R_1}{100}{)}^n$]

768.75 = P[$(1+\frac{5}{100}{)}^2$]

768.75 = P[$(\frac{105}{100}{)}^2$]

768.75 = P[${1.05}^2$]

768.75 = 1.1025 P

768.75 = 1.21 $P$

P = Rs. 697.27

Therefore, the sum is Rs. 697.27